When It Comes to Competing Internationally, Firms That Are Successful

question 81

Multiple Choice

When it comes to competing internationally, firms that are successful domestically typically:

• A)​Are more successful internationally.
• B)​Are on their way to becoming global cult brands.
• C) ​Find that cross-border capabilities may or may not be the same.
• D) ​Find that factors that lead to success domestically are easily translated to competing internationally.

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Definitions:

Collusion

A secret or illicit cooperation or conspiracy, especially between parties to deceive or defraud others, often used in the context of businesses agreeing on prices.

Marginal Cost

The expenditure involved in the production of one more unit of a product or service.

Fixed Cost

Costs that do not vary with the level of output produced, such as rent, salaries, and insurance premiums.

Cartel

A group of independent market participants who collude to increase prices and limit output in order to maximize their collective profits.